Tuesday, July 21, 2026
SUBSCRIBE
22 GLOBAL MEDIA AWARDS
Food For Mzansi
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi
No Result
View All Result
in News

Drowning craft beer industry pleads for support from state

by Duncan Masiwa
9th July 2020
South African craft brewer survey reveals the devastating impact of lockdown on the industry. Photo: unsplash.

South African craft brewer industry survey reveals the devastating impact of lockdown on the industry.

Share on FacebookShare on TwitterShare on WhatsApp

Only 10% of South African craft brewers believe they will be able to continue trading in the near future if the current restrictions on the trade of alcohol and the prohibition of on consumption sales continue. Seven breweries closed down in June, retrenching all their staff.

Responses received from more than 100 breweries in a recent survey conducted by the Craft Brewers Association of South Africa (CBASA), shows that the industry suffered major blows resulting from covid-19 and the resulting economic lockdown.

The future of local craft beer is extremely volatile following a nine-week-long ban on the sale of alcohol and strict trading regulations. The industry has recorded alarming losses and has called on government to help give them a fighting chance of survival.

Read: EXCLUSIVE: Lockdown blow to craft beer industry

According to the survey seven breweries were forced to shut their doors permanently in June. More than half of the respondents indicated that their sales have decreased by between 60-100% since the start of lockdown, while 24% indicated that their sales dropped by between 90-100%. A bulk (87%) of the brewers says they are currently unable to meet monthly expenses.

Early in May, Food For Mzansi also reported on the forced closure of SA’s only malting company to offer a variety of specialty malts to beer brewers.

With rising concerns over how the industry will bounce back, some brewers have no expectation that they will survive the remaining days lockdown.

“We won’t make it. Rent and keeping the staff going with no sales means we won’t have the cash flow to buy ingredients to start up production again, unless we can get an investor to help us through,” one respondent states in the survey.

Wendy Pienaar of CBASA
Wendy Pienaar of CBASA.

Chairperson of the CBASA, Wendy Pienaar, is worried about craft beer and its uncertain future. She says government’s opening the industry more – specifically lifting the restrictions on on-consumption – will be the first step on the road to recovery for brewers. However, for some the damage is irreparable.

“Our sector already lost 15% of South African craft breweries and 68% of those still trading have a negative outlook for the sustainability of their businesses going forward,” she says.

Pienaar says the future of craft breweries in South Africa is extremely unpredictable and they are calling on the government to work with them give their sector a fighting chance of survival. She tells Food For Mzansi they just want to work with government to revive the industry.

“It needs to be a team effort, but at the moment our biggest problem is that government does not want to work with the industry,” she exclaims.

Pienaar’s says that 63% of craft breweries and brewpubs retrenched staff during May and June. Close to 70% of these businesses indicated that they retrenched more than 50% of their workforce. Eight breweries retrenched all their staff members.

Little covid-19 relief received

According to the survey the owners of 84 out of 109 breweries applied for government’s covid-19 temporary relief scheme. 16 of these applicants have been receiving pay-outs each month, while 33 only received a payment for May. 35 employers have not received any pay-outs to date for their employees.

A large number of brewers have reported difficulties and delays experienced when it comes to purchasing raw materials. Many suppliers have been struggling with the coronavirus shutdown that resulted in no production occurring during levels four and five. Backlogs at the ports and poor exchange rates have also impacted negatively.

The tough times have forced brewers to implement penny-pinching strategies in pursuit of saving their battling businesses. Some have moved to manufacturing of other products such as cleaning products, fruit juice and other non-alcoholic beverages. Others have changed to cheaper recipes for their products.

Another respondent voiced their frustration and said that the lockdown is a threat to their business. “Online only is not enough to sustain the business. We need some on-consumption sales channels that the whole market has evolved for.”

Desperate measures to stay afloat

The report further reveals that several brewers partnered up with other owners and some owners were forced to find second jobs to supplement their income.

Despite the industry spiralling down to a seemingly bleak future, 77% of breweries have been able to fairly easily implement covid-19 health protocols at their businesses, the report finds.

A major concern is that only 10% of brewers believed that they would be able to continue trading in the near future if the current restrictions on the trade of alcohol and the prohibition of on consumption sales continue.

Patricia Pillay, CEO of the Beer Association of South Africa. Photo: twitter
Patricia Pillay, CEO of the Beer Association of South Africa.

The CEO of the Beer Association of South Africa, Patricia Pillay, says the craft brewing sector is vital to the long-term sustainability of the South African beer industry. The craft brewing sector supports thousands of livelihoods and contributes to an increasingly transformed industry, she says.

“We have seen remarkable growth in the craft brewer sector over the past few years, so it is extremely concerning to see the devastating impact covid-19 and the lockdown has had on this vibrant industry.

“The BASA remains committed to working with government to come up with joint solutions to ensure the safety of communities, while protecting the thousands of livelihoods and small businesses the beer industry supports,” Pillay commented in the survey.

READ: Craft beer industry anxiously awaits AB InBev decision on malt supply

Duncan Masiwa

DUNCAN MASIWA is the assistant editor at Food For Mzansi, South Africa’s leading digital agriculture news publication. He cut his teeth in community newspapers, writing columns for Helderberg Gazette, a Media24 publication. Today, he leads a team of journalists who strive to set the agricultural news agenda. Besides being a journalist, he is also a television presenter, podcaster and performance poet who has shared stages with leading gospel artists.

Tags: Alcohol banalcohol salesban on alcoholbeerBeer Association of South AfricaCBASACraft BeerCraft Brewers Association of South AfricaLockdownPatricia PillayWendy Pienaar
The Forest of Renewal at Rustlers Valley celebrates the intertwined legacies of Frik Grobbelaar, Anton Chaka and Riky Rick, inviting South Africans to restore the land while cultivating hope, belonging and community. Illustration: ChatGPT
Food for Thought

Rustlers Valley offers a blueprint for South Africa’s renewal

by Ivor Price
18th July 2026

As the Rustlers Valley Memorial Forest is launched in the eastern Free State this weekend, Ivor Price reflects on why...

Read moreDetails
Grain SA appoints Mabuza to lead farmer development

Rising stars: 2026 PGP finalists redefining SA grain farming

18th July 2026
Rooibos heads to space in groundbreaking Mzansi experiment

Rooibos heads to space in groundbreaking Mzansi experiment

18th July 2026

Seriti Institute CEO wins prestigious Best Woman 2026 CSI award

17th July 2026
Farmers and brewers call for budget that builds, not breaks

Minister details Land Bank’s success in boosting black farmers

17th July 2026

SA poultry industry calls for urgent bird flu vaccine rollout

Seriti Institute CEO wins prestigious Best Woman 2026 CSI award

Rustlers Valley offers a blueprint for South Africa’s renewal

Deadline looms: Register water use by 23 July or risk penalties

This week’s agri events: 20 – 24 July

Join Food For Mzansi's WhatsApp channel for the latest updates!

JOIN NOW!
Next Post

Liewe Lulu: Is there a proposal on the horizon?

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 21 global awards in the first six years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

Smart vineyard irrigation starts below the ground

Treat food processing as essential national infrastructure – Khoury

Farmers urged to embrace uncertainty and build resilience

SA poultry industry calls for urgent bird flu vaccine rollout

Mother’s legacy, neighbour’s grace: Venessa Simelane’s farm story

Deadline looms: Register water use by 23 July or risk penalties

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Chat Options

I'm Lerato, your AI assistant!
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2024 Food for Mzansi

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.